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Disclosure Fact Checked

The use of silver is invaluable for many industrial applications as it is a unique precious metal. In addition, among all metals, silver is the best electrical and thermal conductor, making it highly valued for electrical applications. Consequently, silver’s demand is primarily driven by the industrial sector.

As with gold, investors highly value silver due to its similar investment characteristics. Investors can use silver as a haven metal to hedge against inflation and weather an economic downturn. In early 2022, silver was used as an inflation hedge. Despite inflationary and geopolitical concerns, it exhibited double-digit growth. So let’s get into how to buy stock in Silver 2022.

How to Buy Stocks in Silver – Quick Guide

  • First: Create an account with eToro To open a new trading account, visit the official eToro site and click on ‘Start Investing.’ Enter your login information.
  • Second: Verification eToro complies with the most current KYC standards set by top-tier financial authorities, so be prepared to provide identification and proof of address.
  • Third: Deposit You can deposit funds into your new account with a debit card, credit card, e-wallet, or bank transfer.
  • Fifth: Identify your favorite Silver Stocks instantly by typing ‘Silver’ in the top toolbar or clicking the ‘Discover’ tab in the navigation menu.
  • Sixth: Buy- At the top right-hand corner of the screen, click on the ‘Trade’ button to buy Silver stock for as low as $10.

Best Brokers To Buy Silver Stocks

There are many companies in the metals sector that mine silver. However, most mining companies tend to concentrate on producing industrial metals such as iron ore, copper, and aluminum. Mining companies often produce silver as a byproduct of their primary products. Meanwhile, precious metal companies tend to specialize in the production of gold. Although many companies mine silver, the amount of silver they contribute to their revenues is often very small.

Even though these factors limit the range of silver investment options, a few silver stocks are well worth considering.

There are two stock trading platforms out there that we have picked out as the best available in the market. First, it is possible to buy Silver stocks from eToro and Capital.com at zero commissions, as these companies are properly regulated.

Compared to Capital.com, eToro offers a greater choice of US stocks and the chance to buy into financial options. Additionally, eToro offers a wide range of powerful social trading tools perfect for those just starting.

1. eToro — Where to Buy Silver Stocks Cheaply and Safely

When it comes to where to buy Silver stocks, top broker eToro has the ready-made answer for you. With eToro, you can purchase Silver shares with no commission for as little as $10. In addition, there is only a 0.24% spread fee.

Over 3,000 stocks are available to trade at eToro. More than 900 are traded overseas on exchanges such as the London FTSE, Euronext Paris, and the Hong Kong Stock Exchange. Additionally, eToro provides its users with access to the best biotech , the oil, and the most undervalued stocks, to name a few.

Various commodities including silver and silver stocks, indices, forex, 67+ crypto coins, and 264 Exchange Traded Funds (ETFs) are also available. Beginner investors may find ETFs particularly interesting because they enable them to invest in many stocks. In addition, you should give ETFs a look since they are a low-cost way of spreading investment risk, which makes them a worthwhile option.

As a result of its regulation, eToro stands out as one of the best stock apps on the market. FinCEN and FINRA regulate eToro in the US. Additionally, the broker is regulated in Europe and Australia.

eToro has pioneered two great ways of social trading for beginners; Social trading is the concept whereby investment newbies can benefit from the experience and insight of others.

eToro’s CopyTrader software lets you select from thousands of traders and automatically copy their trades for free. eToro offers 70 Smart Portfolios with which you can get access to a strategic position in a market in one go.

Here are some reasons to choose eToro:

  • More than 25m verified users
  • It is regulated in the US by the SEC, FinCEN, and FINRA
  • Investors are insured for up to $500k with SIPC
  • A great selection of 3,000 international stocks to choose from
  • There is no commission on stock trades
  • Spreads on NASDAQ stocks are tight
  • USD deposits free of charge
  • The smartphone app is available for free
  • Crypto/personal finance wallet for eToro Money
  • There is a Smart Portfolio option and a CopyTrader option available
Number of Stocks: 3000+ (international)
Pricing System: No commission. Spread fee only
Cost of Buying Silver stocks: A spread fee of just 0.24%

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Capital.com – Best Option To Trade With High Leverage

Founded in 2016, Capital.com is an online broker owned and operated by Capital Com SV Investments Limited; and has offices in the UK, Cyprus, Gibraltar, and Belarus. Currently, it accepts customers from more than 183 countries at present. Several jurisdictions regulate Capital.com, including the UK, Cyprus, and Belarus.

There are over 3,700 assets available to trade on the broker’s platform, including 27 indices, 200 cryptocurrencies, 3293 shares, 37 commodities, and 138 currency pairs. The fact that Capital.com offers such a wide range of assets makes them one of the best brokers on the market by virtue of the number of instruments they provide to clients.

We recommend Capital.com to traders who want to maximize their profits by leveraging the power of technology. Further, it is also recommended for investors looking for a premium user experience. To improve the trading experience of the broker, the company offers a mobile app that uses artificial intelligence (AI). The company is one of the few brokers that use this technology to help its clients trade.

It is also recommended that new traders take a look at this broker. That is because Capital.com offers a variety of training and support materials to its users. The broker has formulated a Learning Mode that users can use in order to learn more about the market. In addition, investors can participate in free webinars, attend educational courses, read detailed guides, engage in detailed tutorials, and download an investor education app. It is evident that the company places a high priority on investor education and outreach.

Capital.com is available in nearly every country globally, including India, the Netherlands, Germany, the United Kingdom, and a few exclusive island nations, except for the United States, Taiwan, Belgium, and a few other countries.

Here are some reasons to choose Capital.com:

  • Live market updates & price alerts for over 3,700 markets
  • The commission is 0% & there is no hidden fee
  • Spreads that are among the best in the market
  • Execution of orders within a short time frame
  • Demo account that does not expire
  • FCA and CySEC regulated and authorized
  • The minimum deposit is low
  • Provides excellent training materials, educational apps, online courses & trading guides
  • Platform-based on artificial intelligence (AI) technology
  • Live chat and other forms of 24/7 customer support are available in 24 languages
Number of Stocks: 3293
Pricing System: Zero Commission
Cost of Buying Silver stocks: No Spread Fee

83.45% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Silver Stock Price

The Silver Institute noted that some geopolitical and economic factors, including the Russian invasion of Ukraine, the multi-decade high inflation rate, lower growth projections for the global economy, and rising interest rates, pose challenges.

On 12 May, Canada’s TD Securities analysts said: “With the Fed telegraphing its every move, positioning analytics will be key as the market continually squeezes participants after bearish sentiment builds.”

Silver’s underperformance relative to the yellow metal should ease as CTA short acquisitions in silver slow, just as the base metal indicators also point to a near-term bottom.

In 2022, silver prices could stabilize at $26.70 per ounce until the end of September, then fall to $26.40 until the end of the year, according to analysts at the Australian bank ANZ. According to the bank’s silver forecasts, the price of silver is expected to drop to $22.0 per ounce by the end of 2023.

According to Scotiabank’s silver price prediction for 2022, silver will average $24.50 per ounce in 2022 and decline to $23 per ounce by 2023.

Considering the growth in the solar PV sector over the coming years, there is a possibility that silver demand will increase over the coming years. In turn, this may help support the price of silver in the future.

The President of the European Commission announced a mandate mandating that rooftop solar panels be installed on public and commercial buildings in the next five years. This strategy aims to boost the solar capacity target of the European Union by 10% over the base-case projections.

Heraeus Precious Metals analysts point out that the mandate at hand is intended to assist the region in fulfilling its new ambitions to become independent of Russian fossil fuels as soon as possible Additionally, the move could increase the amount of silver required for fabricating photovoltaic (PV) panels, which are largely imported from China.

In addition, it should be noted that a Global PV demand (127 moz) is expected to be 12% of total silver demand by 2022. While metal thrifting has significantly reduced the silver content of PV cells by 80% in the last decade, the demand for silver is expected to grow over the next five years. As a result, silver has followed gold higher but cannot return to that level following a decline below a support level at $22/oz.

According to the Silver Institute, the demand for silver used in electric vehicles is also expected to grow significantly by 2030, with 70 million ounces from 45 million ounces in 2017.

There are a number of factors to keep in mind when making predictions about silver prices, like high market volatility, which makes it more difficult to give long-term estimates. Because of this, analysts often make mistakes.

Over the past 12 months, these silver stocks have had the highest total return. As a result, over 2,500% of total returns have been excluded from the analysis as outliers.

Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
MAG Silver Corp. (MAG) 18.51 1.8 12.6
Discovery Silver Corp. (DSVSF) 1.58 0.5 -4.7
Pan American Silver Corp. (PAAS.TO) CA$35.35 CA$7.4 -8.6
Russell 1000 N/A N/A 8.3
Global X Silver Miners ETF (SIL) N/A N/A -6.7

Buy Silver Stocks with eToro

Throughout the section below, we will take you step by step through how you can make your first trade- wherever you are in the world. You should choose a reputable broker who meets your investment requirements if you invest in silver mining stocks.

Here’s how to start trading Silver stocks after choosing your stock broker.

Step 1: Create an Account and Upload your ID

Go to the broker’s homepage you have chosen and begin the account setting process. You will need to provide your full name, email address, and mobile number during registration. Then, to continue, you will need to create a username and password.

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Step 2: Confirm your identity

Almost all reputable brokers are regulated by the FCA, which is why users may have to verify their accounts. Attach your driver’s license, passport, or utility bill/bank statement to verify your identity. In a few minutes, your broker should verify these documents.

Step 3: Deposit Funds

The next step you need to take is to deposit funds into your trading account. You may find that most brokers accept some or all of the following payment methods:

  • Credit/debit cards
  • Bank transfer
  • e-wallet

Deposit the funds into your account using your preferred payment option.

Step 4: Search for Silver Stocks

After you have funded your account, you should use the platform’s search bar to look for silver stocks or any other stock you wish to purchase. Once you have entered the amount you wish to credit into the trade, you must confirm the transaction.

Step 5: Place a Trade

Silver stocks can be researched on your Silver stock homepage before buying them. In addition to reading your chatfeed, where recent news and comments about silver will be listed, you can check your profile. Additionally, you can also access powerful charting options here to apply your knowledge of technical charting and make your prediction about the Silver price.

Click on the blue ‘Trade’ button when you are ready to begin trading. This will open the buying dialogue box that appears below.

All you have to do is enter the amount of USD you want to spend here. In addition, you can set leverage on your purchases, but this can get complicated (not to mention risky), so it is not recommended for beginners.

Set Stop Loss

The stop loss prevents you from losing too much money if your trade is a mistake or the price drops dramatically. In addition, the software will automatically exit the trade when the price drops to a certain level.

Set Take Profit

In addition, you can set a ‘take profit price level to benefit from price increases. The software will also automatically terminate the trade at this level if the price increases.

Open your Silver Position

If you decide to set your stop loss and take profit levels later, you can do so, or you can ignore them entirely. As soon as you are satisfied with the details of your trade, click the blue ‘Open Trade’ button. (If the NASDAQ is not yet open, you can ‘Set Order’ instead, which will activate your trade instructions as soon as the NASDAQ opens).

Almost certainly, your trade will be executed immediately. Upon receiving your eToro notification, you will be able to view your trade-in in your eToro portfolio.

What Silver Stock to Buy?

There is a widespread belief that the price of silver is likely to rise in the near future. There’s a concern that the Federal Reserve’s easing of economic stimulus measures enacted during the pandemic will create headwinds for the stock market. As a result, safe-haven investments – such as precious metals such as gold and silver – are becoming a hot topic of conversation.

However, which are the best stocks in the category?

Majestic Silver Stock

First Majestic gets about half its revenue from silver and half from gold, making it one of the purest silver plays in the mining sector.

Despite being a Canadian company, First Majestic focuses on Mexico since Mexico produces more silver than any other country. The company operates three mines in Mexico and is developing several other silver mines.

First Majestic also operates Jerritt Canyon Gold Mine. First Majestic purchased this mine in 2021 as part of its diversification strategy. As a result, it has more exposure to silver than any of its peers, even after adding a primary gold mine.

As a producer of silver, First Majestic is positioned to outperform the precious metal’s price. That should increase profits faster than silver prices since it can increase productivity while reducing costs. However, it is also susceptible to operational issues and cost overruns due to this business model. The performance of a silver mining company’s stock can be affected by mining issues, management mistakes, and exposure to other commodities.

First Majestic believes that it can be a long-term outperformer. The company hopes to become the world’s largest primary silver producer. The company invests millions of dollars each year to find and develop new silver mines.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

MAG Silver Stock

MAG Silver Corp (MAG) is an exploration and development company that explores gold, lead, and zinc deposits. Additionally, MAG owns 44% of the Juanicipio project in Zacatecas, Mexico’s Fresnillo District. Founded in 2003, the company has its headquarters in Vancouver, Canada.

Despite MAG’s leading Momentum Grade rating, investors should be aware that MAG receives an ‘F’ grade by Seeking Alpha for Valuation.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Wheaton Precious Metal Corp

Wheaton Precious Metals is a company that streams precious metals. Wheaton does not operate physical mines. Instead, it gives mining companies cash to cover some of the costs associated with mine development. The company receives rights to buy some of the metal produced by the mines at fixed prices in exchange.

Between 2022 and 2026, Wheaton expects its silver streams to account for approximately 40% of its production mix. Silver is the company’s highest exposure among its streaming and royalty competitors.

Wheaton has a contractual obligation to purchase the precious metal up until 2025 for an average price of $5.81 per ounce. Therefore, silver prices above that level generate profits for Wheaton.

Due to its focus on streaming, the company is able to generate a lot of cash. This money is used by Wheaton to invest in new streams and to pay dividends to its shareholders. In addition, due to Wheaton’s business model, it can benefit from rising silver prices in the same way as mining companies. In contrast, it does not come with the risks or potential cost overruns associated with physical mining.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How To Buy Stocks in Silver – Conclusion

Silver’s price can fluctuate a lot. Over the past decade, silver price rose more than 45% in 2020, giving some of those gains back in 2021, declining about 10% in 2021, then rallying by double digits in early 2022. Silver prices fluctuated in response to economic, inflationary, and geopolitical factors. Cryptocurrencies and precious metals were affected by those factors.

Despite the inflation-protection properties of silver, there is more to it than that. Metal has important industrial applications. For example, it is essential for the production of clean energy. As a result, solar energy and electric vehicles (EV) are the two fastest-growing industries.

The growing demand for silver could continue to drive its price higher in the coming years. In addition, silver could provide a way to profit from the growth of clean energy.

Most investors prefer silver stocks over physical metals such as coins and bars. Silver companies can often seek growth opportunities as silver demand rises, allowing them to achieve greater profits faster than silver prices increase. In that case, they should outperform silver. In addition, investors can avoid the hassles and risks that come with acquiring, storing, and insuring physical assets by not owning the physical metal.

Silver, a unique precious metal with the consumer, industrial, and investor demand, is playing a growing role in the economy. As a result, silver mining stocks and silver-focused ETFs may make an attractive addition to many portfolios.

We recommend eToro to perform all your silver stock investments. You can start trading with a minimum investment an all the benefits of the best regulated platform on the market.

eToro – Overall Best Platform to Buy Silver Stocks

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

Is a silver stock a good investment?

Silver is still undervalued compared to other commodities that reached new highs in 2022. Silver prices are about half of their all-time highs from 2011 at writing. So even including other instruments like bonds and equities, silver may be the world's most undervalued asset.

Is it better to buy silver or gold?

Gold and silver supply markets are valued at 24.5 trillion and 4.4 trillion, respectively (data from various news reports), showing that gold enjoys almost 6x more liquidity than silver. This is because there has been ample liquidity in the market due to the huge demand for both metals.

What are some popular silver mining stocks?

There are pure silver miners such as First Majestic Silver Corp, Fortuna Silver Mines, Endeavour Silver Corporation, and diversified miners such as Fresnillo and Newmont Mining.

Is there a silver mining stock with dividends?

The ability to find silver mining stocks with dividends lets investors share in the company's profits. However, some miners do not pay dividends.

About Jhonattan Jimenez
About Jhonattan Jimenez

English Language professional with a vast experience teaching English as a second language, English translator to Spanish, Cryptocurrency enthusiast, interested in geopolitics and economy.

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